United States IRS and Mexican SAT Begin Sharing Info on Bank Accounts Notimex
go to original October 9, 2015

FATCA: The tax law for US citizens abroad (HypoVereinsbank)

United States authorities have begun the exchange of information with Mexico on all Mexicans with bank accounts or investments in the U.S. who have obtained more than $10 USD in annual interest.

With the implementation of the Foreign Account Tax Compliance Act (FATCA), Mexico plans to deliver to the U.S. information on all Americans with accounts or investments in Mexican institutions of more than $50,000 USD.

...Under the bilateral agreement, information about accounts for 2014 and subsequent years will be shared between the Internal Revenue Service (IRS) of the United States and Tax Administration Service (SAT) of Mexico.

The plan of the SAT is to collect and evaluate information on Mexicans with accounts or investments in the US, with a view to initiating the respective audits in appropriate cases starting from 2016.

The IRS will provide to Mexico the name, address and tax identification number of residents of Mexico with accounts or investments in the US that have obtained at least $10 USD in interest on the previous or current year. The program is not retroactive.

IRS also will deliver the account number or equivalent, the name of the depositary institution, the amount of interest paid, the amount of dividends or income received or credited in the United States and the source of other resources of Mexican residents.

Mexico will provide the IRS the name, address and tax number of Americans with accounts whose balance is greater than $50,000 USD, the account number, the monthly balance and the amount of interest paid.

So far more than 600 banking and financial institutions in Mexico have agreed to participate in FATCA. Under US law, those who do not could face penalties, including a 30 percent tax on their assets in the United States.

Read the rest at The Yucatan Times

Related: Mexico Sees Revenue from Tax Crackdown World Hasn't Approved Yet (Bloomberg)

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